Netflix raising subscription prices for most popular plans


The streaming giant on Thursday raised the price of two of its memberships. The previously priced $9.99 plan will increase to $10.99 and the premium tier will increase from $11.99 to $13.99, according to Mashable. Entry level plans will remain at $7.99 a month.

Netflix did not immediately respond to a Fortune request for comment on the price hike.

Tests by MarketWatch staffers show there was no increase listed for customer's current plans.

In November, Netflix will raise prices for USA premium subscribers for the first time since 2014.

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IBD'S TAKE: Netflix stock has an IBD Composite Rating of 88, meaning it has outperformed 88% of stocks in key metrics over the past 12 months. Mashable first reported the Netflix price changes, followed by the Associated Press.

The stand-alone online streaming service of HBO NOW costs $14.99 per month, while cable providers offer HBO GO subscriptions for varying charges - $17.99 with DIRECTV, $15 with DISH Network Corp (NASDAQ: DISH). But the price increases will help Netflix continue to expand its services and improve the quality of streams for future use by consumers, as well as fund ongoing and new Netflix-exclusive projects. Next year, Netflix will likely spend $7 billion, chief content officer Ted Sarandos said earlier this week at a Vanity Fair entertainment conference in Los Angeles. Existing members will be notified of the price increase on October 19 via e-mail and in-service notifications, a Netflix representative told MONEY.

With the price increases, Greenfield expects Netflix's global subscriber growth to slow "modestly" in 2018 (with 20.2 million net new subs vs. 20.9 million projected for 2017) and then re-accelerate in 2019 to 21.1 million net adds.

The Net TV leader has also added a downloading feature for offline viewing, and has increased its spending on original content to $6 billion this year.